Walmart Inc. is joining the streaming wars.
The retail giant announced Wednesday at the Digital Content NewFronts event in New York that its video-on-demand service, Vudu, will launch 12 original movies and series starting later this year. Unlike Netflix Inc. NFLX, +2.23% or Amazon.com Inc.’s AMZN, -0.78% Prime Video, Vudu — which Walmart acquired in 2010 — is free and ad-supported, with streaming movies and shows available to rent or buy.
The new Vudu lineup will include “shoppable” interactive content, with viewers able to purchase products featured in the shows. Details were scant Wednesday, but one executive said pop-up windows are being tested for purchases, and ads would be targeted with viewer preferences in mind.
Walmart WMT, -1.44% did unveil six more traditional, non-interactive shows, including a sci-fi drama starring Evangeline Lilly, best known for her co-starring role on “Lost.” Other offerings include a “Blue’s Clues” reboot for kids, a talent search starring former “American Idol” judge Randy Jackson, and a travel show hosted by Queen Latifah.
Vudu Senior Director Julian Franco said the new shows would be family-friendly and aimed at middle America. “We’re not just going to be programming for Williamsburg and Silver Lake,” he said.
Wednesday’s announcement confirmed a Bloomberg News report from earlier this week, which said Walmart was seeking to use its retail dominance to become a player in the booming online entertainment field. Bloomberg noted that Walmart sells the most TVs of any chain store, and is one of the largest marketers of TV shows and movies. “Walmart sells almost 50 percent of all TVs in the U.S., so clearly they have some opportunities to better leverage the purchase,” Edward Yruma, an analyst at KeyBanc Capital Markets, told Bloomberg.
Vudu will be entering a highly competitive landscape with deep-pocketed rivals. In addition to Netflix and Amazon, there’s Hulu, which is majority-owned by Walt Disney Co. DIS, -0.43% , and a slew of upcoming streaming services expected to launch in the coming months, including Disney Plus, Apple Inc.’s AAPL, +4.91% Apple+, AT&T’s T, -0.55% WarnerMedia and a service from Comcast Corp.’s CMCSA, -0.25% NBCUniversal.
Walmart shares are up 9% year to date, compared to the 13% gain this year for the Dow Jones Industrial Average DJIA, -0.61% , of which it is a component.
Add Comment